Micron Technologies Inc announced that it has received the necessary licenses to supply certain products to its largest customer, Chinese technology giant Huawei Technologies Co.
Trying to boost sales in a slowing memory market, Micron ran into trouble after the U.S. government put Huawei on a so-called blacklist in May, effectively barring U.S. businesses from doing business with the Chinese telecom equipment maker.
The announcement of licenses to cooperate with Huawei comes amid a lukewarm outlook for the second quarter of fiscal 2020. Despite this, Micron CEO Sanjai Mehrotra said the company expects business to recover in the third quarter of fiscal 2020.
In June of this year, Micron announced that some of its products could be legally supplied to Huawei, while others were still subject to the US government's ban. Now it has been officially announced that it has received licenses that will allow it to supply and support certain products, as well as prepare new products for Huawei mobile and server solutions.
It is expected that the receipt of licenses will not have a significant impact on the company's earnings in the next two quarters. The company believes that more time will pass before positive changes occur. Micron's fiscal 2020 second-quarter revenue is expected to be between $4,5 billion and $4,8 billion, compared with analysts' forecast of $4,78 billion, according to Micron's official guidance.
Source: 3dnews.ru